BPINNOVATE: Impacts of Social Safety Net Policies on STEM Entrepreneurship and Innovation in Underrepresented Populations and Underserved Regions

The understanding of how institutional environments shape entrepreneurial formation and innovation activities is essential to the design of policies that enhance participation and success of entrepreneurs and inventors. However, surprisingly little is known about the role of social safety net policies in promoting entrepreneurship and innovation. This is especially concerning, as ongoing policy debates over a range of social safety net issues are being discussed without a solid understanding of how these policies affect entrepreneurship and innovation. This project aims to provide the first set of evaluations of how social safety net policies impact STEM entrepreneurship and innovation, especially in underrepresented populations and underserved regions in the United States. Research results will provide practical advice to policymakers and practitioners regarding how social safety net benefits affect the quantity and quality of STEM entrepreneurs and inventors who are key to sustained global competitiveness, and how they impact the well-being of underrepresented populations and underserved regions through entrepreneurial empowerment and inclusiveness. The proposal consists of three studies that examine social safety net programs providing child and family, health, and educational assistance benefits, respectively. Each study exploits a set of quasi-experiments, which are particularly meaningful for underrepresented populations or underserved regions, to establish the causal effects of one type of social safety net policies on STEM entrepreneurship participation, innovation activities, and innovation outcomes. Additionally, interview and survey data on how various social safety net policies shape individual preferences and behavior will be collected to develop new theories on the micro-foundations of entrepreneurial entry and innovative capability, which can advance the multi-method approach in social sciences. Overall, this project offers important insights into the design of governmental programs and business strategies that would promote inclusive economic growth and maintain U.S. competitiveness in science and technology. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.